SMBC Group's Financial and Credit Portfolio
Safeguards to prevent systemic disruption
PONV
Prior to
PONV*1
suspension of
payment or having
negative net worth
(including the
likelihood thereof)
Posterior to
Framework
• Liquidity support and capital injection
Specified Item 1 Measures set forth in the Deposit Insurance Act ("DIA")
• Capital injection
Act on Special Measures for Strengthening Financial Functions
• Capital injection
Item 1 Measures set forth in the DIA
Financial assistance for orderly resolution
Specified Item 2 Measures set forth in the DIA
This measure can be applied after the non-viability event of both AT1 and
Tier 2 instruments
Financial assistance exceeding payout cost or
Temporary nationalization
Comparison of Measures
established in 2014
Situation
Financial condition of
target financial institution
Support tools
Write-down of AT1 securities
*1 See note 2 on p.75
Specified Item 1 Measures
Subject entities
Financial institutions
Including banks and bank
holding companies ("BHCs")
Banks and BHCs
Banks and BHCS*2
Financial institutions
Including banks and BHCs
Banks
Specified Item 2 Measures
Where there is a risk that severe disruption could occur in Japan's financial market and
any other financial systems
Capital: not having negative net worth
No requirement as to liquidity
Liquidity support
Capital injection
Not required*3
Capital: having negative net worth or
Liquidity: suspension of payment
(including the likelihood thereof)
● Financial assistance
Full permanent write-down as PoNV
*2 The DIA permits capital injection into a BHC which is the parent company of the subject bank to enhance the bank's
capital adequacy
*3 If the issuer's CET1 ratio is below 5.125% at the time Specified Item 1 Measures are applied, AT1 securities will be
subject to partial or full write-down pursuant to the temporary write-down clause
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